Celestica's stock plunged 16.51% during intraday trading on Tuesday, a sharp reversal following the company's release of its first-quarter financial results.

The electronic manufacturing services provider reported earnings that surpassed analyst estimates and significantly raised its full-year 2026 outlook for both revenue and adjusted earnings per share. Despite this strong performance, the stock experienced a severe "sell the news" reaction, with investors opting to take profits.

Analysts attributed the decline to profit-taking action rather than any reflection of deteriorating fundamentals. TD Cowen noted that Celestica's sharply higher 2026 outlook was positive for visibility, calling the guidance increase the "biggest positive surprise" of the quarter. However, the market's reaction suggests that the company's full-year guidance, while upgraded, fell short of the lofty expectations tied to AI infrastructure expansion that had been priced into the stock.